PROHIBIT COOPERATIVE ADVERTISING                                                   S.B. 1181 (S-3):

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

 

 

 

 

 

 

 

 

 

Senate Bill 1181 (Substitute S-3 as reported)

Sponsor:  Senator Peter MacGregor

Committee:  Regulatory Reform

 


CONTENT

 

The bill would amend the Michigan Liquor Control Code to prohibit cooperative advertising between certain entities involved in the manufacture and sale of alcoholic liquor, but allow certain other types of advertising.

 

Specifically, under the bill, there could not be cooperative advertising:

 

--    Between a manufacturer, an outstate seller of beer, an outstate seller of wine, and a retailer.

--    Between a wholesaler and a retailer.

--    Between a manufacturer, an outstate seller of beer, an outstate seller of wine, and a wholesaler.

 

"Cooperative advertising" would mean a jointly funded effort between licensees, or between vendors of spirits.

 

A manufacturer or an outstate seller of beer or wine could do any of the following:

 

--    Pay any portion of the cost of painting a wholesaler's truck.

--    Supply a brand logoed decal or advertising mat, or both, to a wholesaler without cost.

--    Use the name or logo of the wholesaler of the outstate seller of beer or outstate seller of wine in the outstate seller's advertising.

 

The name of a retailer could not appear in the advertising of a manufacturer, an outstate seller of beer, an outstate seller of wine, or a wholesaler.

 

Proposed MCL 436.1610d                                          Legislative Analyst:  Stephen Jackson

 

FISCAL IMPACT

 

The bill would have no fiscal impact on State or local government.

 

Date Completed:  12-3-18                                                   Fiscal Analyst:  Abbey Frazier

 

 

 

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.